South Florida Industrial Market Shows Mixed Results in Q1

During the pandemic, South Florida’s industrial real estate market was on fire. But in the post-pandemic years, demand isn’t quite keeping pace with the growing supply of distribution space.

Vacancy rates at South Florida industrial properties edged up during the first quarter of 2025 as developers delivered more new buildings, JLL reported.

In Miami-Dade County, industrial vacancies rose to 5.5 percent in the first quarter, up from 5 percent in the previous quarter, JLL said, driven largely by completions of newly built spaces. Still, average asking rents rose to $16.58 per square foot.

Leasing activity was solid, with 2 million square feet of new leases and renewals recorded in the first three months of the year. The largest new deal was a 229,285-square-foot lease signed by Performance Food Group at 3595 Northwest 125th Street in Miami. In another noteworthy deal, Garland Foods took 174,400 square feet at Hilco Medley, a new Class A development.

In Palm Beach County, meanwhile, just 100,000 square feet of leasing activity was recorded in the first quarter. At the same time, the inventory of available space expanded with 1 million square feet of new space this year alone, and some 3 million square feet since 2023.

That explains why Palm Beach County’s industrial vacancy rate has risen to 6.3 percent. Average asking rents are $14.27 per square foot, JLL said.

Broward County, for its part, bucked the regional trend. Vacancies there are just 4.1 percent, while lease rates are $16.29 per square foot. Leasing activity was strong for the quarter, totaling 950,000 square feet, JLL said. Transpire Bio inked the largest new deal, taking 139,020 square feet at South Florida Distribution Center in Pembroke Pines.

Jeff Ostrowski can be reached at jostrowski@commercialobserver.com.